Credila Financial Services, the education-focused lender formerly known as HDFC Credila, is preparing to raise up to $600 million from overseas lenders once its upcoming IPO concludes. The fundraising will take place through the external commercial borrowing (ECB) route, with global banks such as DBS, MUFG, and Sumitomo Mitsui Banking Corp (SMBC) among those in discussions.
Borrowing Structure and Costs
The proposed debt is being marketed at spreads of 135-150 basis points above SOFR, which translates to an estimated cost of 5.5-6%. Importantly, the borrowing will be dollar-denominated at a time when the Indian rupee has already weakened by more than 2% against the US dollar in 2025.
Expanding Funding Mix
Over the past two years, Credila has deliberately diversified its borrowing profile. Traditionally dependent on term loans and non-convertible debentures, the company has broadened its lender network from 19 banking relationships in 2023 to 29 by March 2025. Offshore debt, which was previously absent, now makes up 18.4% of its total borrowings.
The lender has also filed a ₹5,000 crore IPO prospectus (June 2025), signaling its intent to further strengthen its capital base.
Ownership Transition and Rising Debt
Credila has undergone significant ownership changes since 2023. Originally sold by HDFC Ltd. during its merger process with HDFC Bank, the company was later acquired by EQT’s Kopvoorn BV and ChrysCapital in March 2024. As of March 2025, Kopvoorn holds a 63.96% stake, positioning the firm under private equity ownership.
Financially, the company’s borrowings have surged to ₹32,700 crore in FY25, up sharply from ₹20,067 crore in FY24. This growth has also nudged up its average cost of debt to 8.85%, compared with 8.63% a year earlier.
Strategic Outlook
The planned $600 million ECB underlines Credila’s growing reliance on diversified funding avenues to meet rising demand for education loans. With offshore borrowings now firmly part of its debt profile and a major IPO on the horizon, the company is positioning itself as a more globally financed education lender in India’s evolving credit landscape.
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